Lao PDR’s tourism industry has been devastated since COVID-19 safety measures closed borders in early 2020. Tourism has contracted by about 80% due to COVID-19, with the majority of the 130,000 local people employed in the tourism industry either losing their jobs completely or having their salaries reduced significantly. The Lao economy has lost an estimated $1.4billion in direct income from the tourism industry, which has had significant impacts throughout the entire economy due to reduced spending on all goods and services and multiplier effects. Laos’ tourism industry will lose another high season if not reopened by January 2022.
Many destinations in the region have already opened or are planning to open before the end of 2021, including Maldives, Singapore, Sri Lanka, Thailand, Nepal, Bali, Cambodia, Malaysia and India. On average rate of these destinations have a 61% vaccination rate, which Lao PDR is set to reach by the end of 2021. However, key destinations in Laos such as Vientiane Capital have an above average vaccination rate (72.9% fully vaccinated and 96.5% with at least one dose), higher than popular sandbox destinations such as Phuket. Average daily cases in Lao PDR (0.007) is one of the lowest in the region and lower than the average in these destinations (0.033%). Lessons learned from destinations that have opened for tourism include requiring PCR testing and full vaccination and the need to make travel requirements easy and transparent including reduced quarantine time (less than 24-hours of self-isolation); simple application procedures; reasonable travel insurance; user friendly contact tracing apps; clear emergency procedures and refund policies; certified COVID-19 safe hotels and businesses; and regular updates. These lessons learned provide a direction forward for Lao PDR to follow and take advantage of the opportunity to compete with other destinations.
The Green Travel Zone Plan
This plan presents the Lao Green Travel Zone concept, which integrates the Project Sandbox proposal of Lao Airlines and input from members of the Lao National Chamber of Commerce and Industry, including representatives of tour companies, hotels and restaurants, transportation providers and the Lao Insurance Association. The plan is based on recommendations by other stakeholders in the industry, including Ministry of Information, Culture and Tourism, UNDP, and UNWTO, which propose opening from 2022 and recovery by 2024-25.
Characteristics of the Green Travel Zone Plan
- Priority 1: Green Travel Zones: The plan proposes to open two COVID-19 safe travel zones by 1 January 2022 in Vientiane Capital / Vang Vieng and Luang Prabang District / Chomphet District, where population vaccination rates are roughly 80% and capacity for processing arrivals by air, train or border crossing is adequate. From January to March 2022, visitor numbers and revenue for Priority 1 zones are projected at 30,415 and $30.1million. The plan proposes that visitors be allowed to travel outside the green travel zone on the Green Trail using approved transportation and staying, eating and enjoying activities at approved lodges and resorts only. In order to adequately market the Lao Green Travel Zone, nationalities should not be limited and should include the top 10 generating markets and those international and regional countries or cities who have strong spending potential and have met the required vaccination rates.
- Priority 2: Green Travel Zones include other key destinations with major border crossings (see section 2.8 for full list) and are projected for re-opening in April 2022, once eligible population vaccination rates reach 70-80% in those locations, vaccination rates in neighboring border countries have improved, and Rapid Antigen testing is feasible. Total visitors and revenue for Priority 2 Green Travel Zone opening are projected at 132,973 and $68.8million by June 2022.
- Priority 3: All other destinations in the country are listed as Priority 3 and would be opened in July 2022 once the entire country’s vaccination rates are 70-80% and Priority 1 & 2 Green Travel Zone openings have proven successful. The plan aims for full recovery by the end of 2024, when visitor numbers and revenue are expected to return to 2019 levels, according to UNWTO estimates, of 4.7million and $934million.
Visitor Requirements for the Green Travel Zone
• For visitor entry requirements, the proposal recommends that Green Travel Zones will allow fully vaccinated visitors only, including both international and domestic travelers.
• International visitors will be required to apply for a Green Travel Zone Pass using a simple online form through the official eVisa website, where they will be required to upload their proof of full vaccination.
• In order to ensure visitors are COVID-19 free, they will be required to receive a negative PCR before departure and another PCR test in country. They will be required to stay in self- isolation at their hotel for 24 hours or less to wait for test results before being allowed to explore the Green Travel Zone freely.
• Visitors will be required to download a user-friendly contact tracing app with QR code check- in at all approved venues.
• Domestic travelers will be required to show proof of vaccination before entering the Green Travel Zone in order to maintain safety inside the zone for both local people and visitors, but will not be required to take a COVID-19 test.
Business Requirements in the Lao Green Travel Zone
Visitors will be required to use only tourism businesses that follow the LaoSafe standards (for accommodations, restaurants, tour guides, drivers and attractions), which have recently been approved by the Ministry of Health and meet national and international protocols. Tour companies will follow Safe Travels, approved by the World Tourism and Travel Council. Staff working at approved LaoSafe businesses will be required to be 90% vaccinated and with 100% of staff in direct contact with visitors will be vaccinated. A Standard Operating Procedures has been drafted as a reference for protocols to be implemented at all levels of tourism operations, in addition to LaoSafe and Safe Travels standards.
Roadmap & Taskforce for Opening the Green Travel Zone
A roadmap and timeline for opening includes establishment of a cross-ministerial Green Travel Zone Taskforce to be chaired by the Deputy Prime Minister with members from all relevant ministries including Ministry of Health, Ministry of Information, Culture and Tourism Ministry of Public Security, Ministry of Foreign Affairs, and Ministry of Public Works and Transportation. The Lao National Chamber of Commerce with support of its members including Lao Airlines, will support the taskforce with implementation, including getting businesses LaoSafe and Safe Travels ready. Reopening will require full cooperation and coordination between all public and private sector stakeholders. Key steps will be implemented between November – December 2021 with each ministry taking necessary steps with support by the Lao National Chamber of Commerce and Industry and development partners.
Safey & Socio-economic Benefits of the Lao Green Travel Zone Plan
Implementing the Green Travel Zone plan will allow for a safe reopening based on best practice from around the region, while improving the overall safety of all businesses in the tourism sector in Lao PDR, which will help to protect the Lao people from COVID-19. It will allow the Government to reach its poverty alleviation and economic objectives by building back better the tourism industry while ensuring maximum COVID-190 safety to the general population, staff working in the industry and visitors. Waiting to re-open in mid- or late-2022 will have significant long-term negative impacts on the industry and economy and will reduce Lao PDR’s competitiveness with other destinations.
Recommendation to the Prime Minister
The Lao National Chamber of Commerce and Industry seeks approval from the Prime Minister for the implementation of this plan. We request that all relevant sectors and ministries receive direction to join together to further develop the plan’s details and implement the required steps necessary for the safe opening of the Lao Green Travel Zone by January 2021 for the benefit of the Lao people and tourism industry businesses and stakeholders.
